First property

[Richard Morgan]

My wife and I are looking at purchasing our first rental property. The home is 1360 sq/ft and we hope to purchase the home at $115,000. The current owner was recently married and rented the home out but is anxious to sell. The home rents for $1100 a month. I would like some advice, should I finance the home at 30 years or should I finance at 15 years and aggressively pay the property off?

If we are able to get the home at $115K, put 15K down and finance 100K at 30 years the monthly payment is around $675. This would give us a profit of $425 a month ROI. If we do the same thing but finance for 15 years the monthly payment is $925 a month leaving $175 a month ROI.

My wife and I are both in our mid 40s, I would like to quit my job in another 5 years and focus solely on our properties. What would best benefit these goals? Thanks for the advice!